The word “trusts” seems to cause confusion as a planning strategy. Generically speaking, “trusts” are arrangements providing legal oversight on assets per the wishes of the person who funds them. The term is not directly related to those who are by definition “rich,” but for anybody who wants their asset-related instructions to be followed in life and/or death.
Over the past 20 years, there has been a consolidation of trust services among the various financial institutions. Many have removed these services from their local markets and many have eliminated the service completely. In 2000, the estate exemption was only $675,000 per person and the top tax rate was at 55%. In 2020, that exemption is $11,800,000 per person with a top tax rate at 40%. This gradual increase in exemption amount as well as reduction in tax rate caused institutions to reconsider offering trust services. However, trust services are not just for those with large estates.
Highland Trust Partners, therefore, has realized a need to help families in our communities with their trust requirements. Managing assets, saving taxes, providing for family members after death or becoming incapacitated, and other scenarios are facets of living that all people have to consider. We are here to collaborate with your tax advisor or attorney to help determine if a trust can provide a level of confidence related to any of these challenges. We would be happy to provide a free consultation.
Neither Highland Trust Partners, nor LPL Financial provide tax or legal advice.